Lianhe Ratings Global Limited (“Lianhe Global”) has upgraded the global scale Long-term Issuer and Issuance Credit Rating of Zhangzhou Jiulongjiang Group Co., Ltd. (“Jiulongjiang Group” or “the company”) to ‘A-’ from ‘BBB+’; Issuer Rating Outlook Stable.
The Issuer Credit Rating upgrade reflects the company’s increasing strategic importance in Zhangzhou, as the company is deepening its roles in the regional industry development under the guidance of the Zhangzhou Municipal People’s Government (“Zhangzhou government”). The company is well-positioned to enhance its involvement in various aspects of regional industrial growth, including petrochemical industry, port logistics, utility sales and other related sectors. Besides. It is aligned with the development plans of the Zhangzhou government and strengthened Jiulongjiang Group’s role as the major entity responsible for regional industrial development in Zhangzhou.
We believe this continues to present a high possibility that the Zhangzhou government would provide very strong support to Jiulongjiang Group if needed, in light of its 90% ownership of Jiulongjiang Group, Jiulongjiang Group’s strategic position as an important state-owned asset management and operation entity of Zhangzhou and the strong linkage between the Zhangzhou government and Jiulongjiang Group, including management supervision, strategic alignment, and ongoing operational and financial support. In addition, the Zhangzhou government may face significant negative impact on its reputation, business and financing activities should Jiulongjiang Group encounter any operational or financial difficulties.
Lianhe Global has also upgraded the global scale Long-term Issuance Credit Rating of the senior unsecured CNY bonds issued by Jiulongjiang Group to ‘A-’ from ‘BBB+’ at the same time. A full list of upgraded issuance rating is included in this report.
The Stable Outlook reflects our expectation that Jiulongjiang Group’s strategic importance would remain intact while the Zhangzhou government will continue to ensure Jiulongjiang Group’s stable operation.